Pricing unhappiness ends 1967

In Europe especially there was immediate dismay at the suggestion of a 14.3% surcharge on countries that had not devalued. One Dutch client agreed to a maximum of 8%, but when customers convened in their regional groupings, they were less amenable. 

The Italian group responded that no surcharge was justifiable -- "according to your proposal, only countries which have devalued do not directly lose."

There was similar reaction from the nine members of the Franco-Belgian group, who responded: "we feel no need for any change in the sterling subscription rates and, therefore, we will pay the price in pounds unchanged." They took the view that "the influence of the sterling devaluation should only be felt at the end of 1968 and should be put on the agenda of the Autumn Meeting 1968."

The secretary of the Franco-Belgian group copied that letter of 6th December to her international counterparts, a fact lamented by Monty in his response of six days later. "It is a pity that you circularised to Regional Secretaries since the United States and Japanese subscribers had already agreed to their subscriptions which were in dollars and yen respectively. As a result of your notification, we have felt ourselves compelled also to grant them a reduction."  Monty expressed the hope that the group would agree to the enclosed revised proposal, as circulated to all subscribers and dated 11th December.

The key paragraph of this new circular was:-

"In view of the complaints which have been received, we shall try to absorb some costs in order to mainting the goodwill of subscribers and we are therefore prepared to compromise, and grant a 5% reduction in the dollar price of Ringdoc subscriptions, and to impose a devaluation surcharge of only 8% instead of 14.3% to all other countries which have not devalued."

No reponses to this are extant, but they can be inferred from the opening of a fresh circular of 29th December 1967:

"There has been a considerable amount of confusion, discontent and uncertainty in connection with Derwent's present and future pricing policy as a result of devaluation of sterling, and we are are anxious to resolve the position as quickly as possible." 

Subscribers in Europe and America were accordingly invited to send a representative to one of the meetings to be held during 10-18 January 1968 in Milan, Basle, Paris, Frankfurt, Amsterdam, Copenhagen, New York and London. The were also circulated with fresh proposals, dated 2nd January, essentially to invoice in future in the customer's own currency.

Next